Observing the global financial markets, it isn’t hard to determine that a lot of asset classes have devalued due to many political factors and the Covid-19 pandemic that brought in a lot of uncertainty and fear. The S&P 500 depreciated by as much as a whopping 27% while the Dow Jones Industrial Average(US30) and gold have decreased as much as 22% from their all-time highs. That being said, as difficult of a time as it is for the average trader/ investor in centralised markets, it is strikingly more strenuous for traders/investors in cryptocurrencies. Bitcoin, for example, the leading indicator of the crypto markets, has lost a mind-blowing 72% of its value while Ethereum is down 82%. This would make any seasoned veteran in the markets flinch if he/she were told that their investment is worth a quarter of what it was worth just 2 years prior.
Now if you were to hear that your portfolio has depreciated by 97%, it may cause you to panic. But that’s exactly what NFT enthusiasts had to face when prices fell rapidly. It unveiled to the whole world what most of these NFTs were really worth. Even notable NFTs such as the first tweet on Twitter by Jack Dorsey sold for 2.9 million USD at an all-time high. Bought by an Iranian investor, Sina Estiva. However, when he tried to auction it off in April, it was only able to fetch 280 US Dollars. This would indicate a depreciation of 99.99% of its previous value.
Which begs the question, ‘Why are we still pursuing NFT?’. As an organisation, business or any entity, it is important to objectively stress test your ideas, actions, and the direction you decide to take. This helps mitigate risk and also factors in when analysing how changing markets will affect your organisation. That is why now is as good of a time as ever to get into why we are still building NFTs and the infrastructure around them.
First of all, we need to look at what NFTs are and what they bring to the table. This will help us identify if NFTs are a good fit for our vision and mission. NFT stands for Non-Fungible Token and is often viewed as a certificate of authentication for a piece of digital art as it is stored on the blockchain. The art can be digital or representative of real-life items digitally. Non-fungible means that it is hard to exchange or trade for another of its kind, each having its own value. Buying one allows you to claim ownership of the NFT. But as with most things digital, it is easy to copy and share with others without consent from the creator with ease. They come in numerous forms such as photos, videos, and audio.
Not to mention, a lot of NFTs are tokenized versions of real-world items. Real estate listings, musical albums, photographs, etc are all various items that are digitized. Moreover, NFTs are also used as a means to cement a person’s identity and deter malicious attacks against him/her through their web 3 dealings using decentralized Identifiers or DID for short. The idea is that paying taxes, ordering goods, and renewing your license will all be simplified and highly secure. Besides that, it will also be a bonus for the medical sector as doctors can issue NFT birth certificates at birth which will be tamper-proof. Medical professionals will have a much easier time reviewing their patient’s medical history. Academia is another field that NFTs have an impact on with immutable proof of educational background when applying for jobs and all types of fields that require certification. The NFTs have also appeared in popular games such as Axie Infinity, CryptoKitties, and Ember Sword. Trading them in these games is simplified and the process of it all is secure and verifiable. Cross-platform compatibility is now also possible with NFTs which may encourage players to join and progress throughout the game. Amongst many other solutions that NFTs provide, another potential use is allowing goods and items to have tamper-proof NFT identities. This allows us to verify many crucial data points such as provenance, contents within the packaging, and the source or sources of the product. All that being said, it is still vital to acknowledge that the NFT space is still in its infancy stage and has a long way to go.
Now that we’ve discussed a lot of the reasons lending credibility to NFTs and what they represent, it is also crucial to discuss what DefiSports offers.
When it comes to DefiSports, we like to stay several steps ahead of the curve and be open to and experimental with everything we put out. Being a relatively new tech company allows us to be flexible and make it easier for us to adapt to a changing environment which is perfect when keeping up with the fast-paced crypto markets. Besides having thoroughly researched the NFT space, DefiSports has always been and always will be focused on providing practical utilities that can improve/evolve/transform the current infrastructure.
Our state-of-the-art NFT marketplace rivals even those that came before us and have become household names. As it will be 100% decentralised and audited by Certik. From the coding to the UX &UI design, everything has been worked on to supersede the standard of most marketplaces. It allows the user to not just trade digital NFTs but also physical ones. All transportation fees for the physical NFTs will be covered by us. Not to mention, auctions can take place. There will also be exclusive merchandise available. Rare collectibles such as vintage Nintendo Consoles will be available. All of which will be linked back to the blockchain for verification and security purposes. It will also be audited.
Okay but then what makes DefiSports’ NFTs any different from others? The NFTs that we will offer on our marketplace will be backed by athletes themselves as well as their careers and achievements. This brings it intrinsic value, thus adding to its valuation and credibility. And as mentioned before, our NFTs will be both digital and physical. All handling and transportation fees will be completely subsidized by us.
Our NFTs will also be featured in our P2E games. Creating an immersive experience and bringing a lucrative opportunity to earn. As it can be traded and used within the games. Alongside this, the NFTs will also be available in the Metaverse we are building. Allowing people to use the NFTs as playable characters and so much more. As this will all be part of Web 3.0, this is just the beginning of what will be possible with NFTs. Especially with the aid of concepts like dynamic NFTs which can change some of its proertities based on external conditions.
All in all, this is why we choose to continue working on our NFTs as despite the current bear market there is a lot of room for growth in this emerging market. Even though it may not be as envisioned, there is a good chance that they may prove to be resourceful in the continuous development of Web 3.0 and on the blockchain for a plethora of reasons.
Thank you for reading!
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